FIH, the AIM quoted group that owns essential services businesses in the UK and Falkland Islands, is pleased to announce its unaudited results for the six months ended 30 September 2019 (“the period”). Comparisons shown below are for the same period in 2018 unless otherwise stated.
Group Financial Highlights – Resilient performance despite market pressures
· Group revenue at £19.4 million (2018: £19.6 million)
· Profit before tax at £1.25 million (2018: £1.35 million)
· Diluted earnings per share: 7.6p (2018: 8.3p)
· Bank borrowings at 30 September 2019: £16.4 million (31 March 2019: £12.8 million)
· Cash balances at 30 September 2019: £9.6 million (31 March 2019: £6.2 million)
· Increased interim dividend of 1.80 pence per share (2018: 1.65 pence per share)
Operating Highlights
Falkland Islands Company (“FIC”) – Encouraging and profitable trading led by solid growth across multiple divisions and strong recovery in construction
· Revenue up 13.9% at £9.08 million (2018: £7.97 million) reflecting strong recovery in Falkland Building Services (FBS) (up 82% to £1.54 million)
· Continued growth in Retail sales (up 6% to £4.45 million), Falklands 4×4 (up 6.7% to £1.64 million) and Support Services (up 5.6% to £0.78 million) and positive revenue impact following investment in Property Rental (up 32.3% to £0.3 million)
· Profit before tax increased by 68% to £0.67 million (2018: £0.45 million)
· Significant medium to long-term growth opportunities linked to: land-based tourism, with a regular commercial flight from Brazil due to commence this month; possible oil development, with a decision on Sea Lion development expected from Premier Oil in 2020; and opportunities from Falkland Island Government and Ministry of Defence with emerging plans for local infrastructure investment.
Portsmouth Harbour Ferry Company (“PHFC”) – Revenue lower, with passenger volumes impacted by aircraft carrier’s summer deployment
· Total PHFC revenue decreased 1.2% to £2.31 million (2018: £2.34 million) reflecting a 3.2% decline in passenger numbers, outweighing the 3.0% annual increase in fares
· Passenger volumes most markedly down while the Navy’s new aircraft carrier was away during the summer, but this is expected to return before January 2020 along with HMS Prince of Wales
· 17% increase in Cruising and Other income, to £0.17 million, with successful season of Solent leisure cruises
· Cost controls ensured only marginal decrease in profit before tax, to £0.49 million (2018: £0.51 million)
· Medium and long-term potential for increased ferry passenger volumes linked to mooted redevelopment of Gosport harbour’s transport hubs, including possible improved retail, leisure and accommodation amenities.
Momart – Challenging commercial art market dented performance, despite strength in high margin services
· Overall revenue declined by 13.4% to £8.04 million (2018: £9.28 million), impacted by uncertainty amongst high-net-worth individuals and ensuing reduced activity by commercial clients in the face of challenging UK and international art market conditions
· Revenue in art storage rose 3.3% to £1.04 million, with success in securing new private and public sector storage clients, which will continue to benefit in future periods
· Notable exhibition activity included: “Mary Quant” and “Cars” at the V&A; “Anthony Gormley” at the Royal Academy; “Ashruburnipal” at the British Museum; “Olifur Eliasson” at Tate Modern; and “Van Gogh” at Tate Britain.
John Foster, Chief Executive, said:
“It has been a challenging period for several business divisions, and especially at Momart in the art sector, so we are satisfied that the Group has delivered a resilient half year performance overall.
“Supported by strength in the core Falklands business and tight cost control, the Group’s profit before tax was reasonably robust. Meanwhile the Group’s cash position remains strong, and we are pleased to announce an increased interim dividend of 1.80 pence per share.
“With a number of exciting medium to long-term growth opportunities in each of our diverse businesses, the Board looks to the future with confidence.”
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